Myer in October offered to buy No.2 rival David Jones at market value to increase their competitiveness. But David Jones, which had a market capitalisation of A$1.7 billion as of Thursday, rejected the offer.

The pair have seen sales fall over the past few years as shoppers go online, but a recent pick-up prompted David Jones’ chief last month to backtrack on a resignation announced in October, local media reported.

In a letter included in a statement to the Australian Stock Exchange on Thursday, Myer Chairman Paul McClintock asked David Jones Chairman Peter Mason for his “agreement and support” to discuss a “merger of equals, with neither party taking or ceding control”.

Myer has re-appointed Chief Executive Bernie Brookes, who was scheduled to leave in August, on an indefinite basis, making him “available to lead the combined company should the merger occur”, McClintock wrote.

Brookes is Myer’s No.10 shareholder with a 1.71 percent stake, according to data compiled by Reuters.